VAT is a good example of which kind of tax ?

Related Mcqs:

1. VAT is a good example of which kind of tax ?

   A. Specific
   B. Exercise duty
   C. Direct
   D. Ad valorem

2. The property tax wealth tax inheritance tax and income taxes such as persona and corporate taxes are ?

   A. indirect taxes
   B. direct taxes
   C. inelastic
   D. value-added tax

3. Imagine there is no tax on income up to Rs 1000 after that there is a tax of 505 what is the average tax rate on an income of Rs 20,000 ?

   A. Rs 50000
   B. 20%
   C. 25%
   D. Rs 10000

4. If VAT rates rise, then costs are likely to ___ and demand is likely to ____?

   A. rise; rise
   B. rise; fall
   C. fall; fall
   D. fall; rise

5. Government levy tax on imports and exports What this tax is called ?

   A. Custom
   B. Exercise Duty
   C. Tariff
   D. Freight

6. Refer to Exhibit 4. If a tax is placed on the product in this market tax revenue paid by the buyers is the area ?

   A. B + C + E + F
   B. B
   C. B + C
   D. A

7. Refer to Exhibit 4. If a tax is placed on the product in this market tax revenue paid by the sellers is the area ?

   A. C + F
   B. A
   C. B
   D. C

8. When a tax on a good start small and is gradually increased tax revenue ?

   A. will fall
   B. will rise
   C. will first rise and then fall
   D. will first fall and then rise

9. If a tax on a good is doubled the deadweight loss from the tax ?

   A. doubles
   B. stays the same
   C. increase by a factor of four.
   D. could rise or fall

10. When a tax distorts incentives to buyers and sellers so that fewer goods are produced and sold than otherwise the tax has ?

    A. caused a deadweight loss
    B. decreased equity
    C. generated no tax revenue
    D. increased efficiency